09-28-2013
• http://www.zerohedge.com/news/2013-09-28/can-centr
So what does this mean for investors? Well, as they found out this month, central banks can spring surprises. It is therefore best to try to figure out what will prompt central bankers to change their minds. Understanding their ‘reaction function’ and adjusting probabilities for policy outcomes as the data arrive remains the least bad way to predict central bank policy.
We’re all data watchers now